1. History & Background of the Industry
The very first outdoor theme park built in Singapore is Escape Theme Park. It was opened in May 2000 at the East side of Singapore, Downtown East, Pasir Ris. It has attracted over 4 million people since its opening. However due to redevelopment of Downtown East, Escape Theme Park was ceased on 26 November 2011.
The first water theme park in Singapore was Wild Wild Wet. It opened in June 2004 at the same location as Escape Theme Park. Wild Wild Wet has received several awards since it’s opening.
Universal Studios Singapore (USS) was set up at Sentosa, Waterfront station. It is the largest theme park in Singapore and has attracted 2 million visitors in the first nine months of their opening. USS celebrated their 10 millionth visitor in April 2013.
Recently, there was another water theme park build at Sentosa. Adventure Cove was opened on 22 November 2012. It has more rides available than Wild Wild Wet. Since then, it was seen as a worthy competitor to Wild Wild Wet.
2. Industry in Detail – Players (Firms/Companies), Brands, Trends
Market Structure – Identification
It is identified as oligopoly.
Market share of firms in the industry
Universal Studios has the highest market share in Singapore as they offer unique rides that no other theme parks have. Their main competitors are Adventure Cove and Wild Wild Wet. However, both Wild Wild Wet and Adventure Cove are of the same type of theme parks which provides only water rides. With similar attractions, both have a split share of the market.
Barriers to enter
There is a very high barrier for entry in the theme park industry as it requires a lot of financial capital as well as land space. Singapore being a small country has very limited space. It is not easy to find an ideal land to set up a theme park. It also takes time to clear away the land to build a theme park which requires a large space.
Competition / Brand competition
There is not much intense competition in this industry as three firms are mainly promoting their services through advertisements and price promotions. USS has very unique rides and is also a very well-known theme park all over the world. Hence, they do not have to worry much on the competition against Adventure Cove and Wild Wild Wet. On the other hand, Adventure Cove and Wild Wild Wet will have more tough competition against each other as both provide similar rides and that now Wild Wild Wet is undergoing expansions so that they will have the same standard as Adventure Cove.
Issues facing the industry
With no issues with the government, only issue they face is that each firm could see a cut in their profits as there are already other firms showing interest in the theme park market here in Singapore, an example would be Disneyland. Disneyland being the biggest player in this industry is finalizing their plans to open a theme park in Singapore. With much more experience than any other companies, it is also higher recognized by all hence they would not have troubles making a claim on the market share.
Long term prospects (profit / loss)
With the expectation of increasing visitors in the theme park industry, there will be a profiting in the long run as these theme parks are considered one of the tourist attractions in Singapore.
3. Product Differentiation - How the various firms / product brands / services compete with each other?
Comparing the 4 firms in this industry, we found that there are two main categories for the product/service provided. Universal Studios Singapore and Escape Theme Park provides its customers with mechanical thrill rides while Adventure Cove and Wild Wild Wet provides its customers with water thrill rides.
Location-wise, the four firms are divided into two areas, Sentosa and Downtown East. Sentosa is an island off mainland Singapore and is a tourist attraction. So Universal Studios Singapore and...
References: 1. http://www.themepark.sg/escape-theme-park.html
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